February 26, 2024
Economy

Indian Economy before covid and after covid

Indian Economy before covid and after covid

Before covid, India’s economy was in turmoil with the country’s currency,

 the rupee, hitting record lows due to a lack of foreign reserves, high oil prices and large trade deficits. 

This precipitated an increase in inflation and created economic instability in the country.

After covid India’s economy is more buoyant with inflation on an upward trajectory- dropping back down to 4.2% from its previous level of 6%.

 The rupee has also stabilized after its sharp depreciation against the US dollar earlier this year- it currently stands at Rs67.3 against one dollar. 

The country’s foreign exchange reserves are also up to $93.9billion after declining in the previously mentioned period.

Now that India’s economy has found its footing , 

it is time for the government to focus on its next growth driver- creating more jobs for India’s youth. 

The government needs to look at ways to reduce inflation , unemployment and creating more sufficient jobs. 

The growth in creating formal sector jobs is in stark contrast with the fact that there are approximately 1 million job seekers in India in the unorganised sector.

Key figures indicate that India has created about 8 million jobs in the last 6 months of 2012. 

However, the number is still more than 1.5 times the number of Indian youths entering the job market every year. 

The national unemployment rate is pegged at 9.1%, which is nowhere near its lowest point during the dovid years- 6.6% . 

Further , there are still many people who are too young or too old to be found in work force .

Further more , there remains a great deal of job losses in sectors like textile, leather and garment industries

handlooms and export—oriented sectors . The government needs to do more to create enough job opportunities for India ‘s youth . 

The demand for jobs is not likely to subside any time soon .

Anurag Gupta Anurag Gupta is the cofounder of Covidien India. He has also worked with Accenture and EY. 

He holds a degree in engineering from the Institute of Technology, Banaras Hindu University, Varanasi. More Posts – Twitter – Facebook – Google Plus – YouTube

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According to a report from the World Bank , 

the global economy is projected to grow by 3.5% in 2013 , amidst looming issues such as high budget deficits and high unemployment rates .

 In India , economic growth is expected to increase from 5% in 2012 to 4.4% this year and

 at least 4.8% next year, according to the Asian Development Bank.

 Oil prices are also expected to decline from its present level of $111 a barrel, which will help ease inflationary pressures in India .

The government’s focus should be on pursuing policies to create more job opportunities, address inflationary concerns ,

 reduce the fiscal deficit and boost economic growth. 

Further, the government needs to focus on creating an environment where big businesses can thrive, which will further help create more jobs.

Issues of unemployment are not unique to India , but the lack of job creation remains a cause for concern . 

The government should also focus on creating better manager education. 

The manager education system in India is currently under-developed and this presents a problem for big businesses that want to hire qualified managers .

Also , Indian universities are not producing many high-quality management graduates who have an international outlook . 

This is in stark contrast with the B-schools in the West, where international students are a large proportion of the student population. 

This has had an adverse impact on India’s ability to attract foreign companies to invest in the country .

 Indian businesses also need further support from government policies to encourage R&D-oriented activities , which will create more jobs.

The current state of India’s economy is not alarming, but there are still concerns about unemployment levels and inflation . 

The government needs to concentrate on creating more jobs for its growing youth population. 

Also , it needs to put enough pressure on India ‘s corporations

 that have made significant profits this year by focusing on improving business environment and conditions for big businesses.

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Aaron Finch

There are many labels that could be given to describe me, but one thing’s for certain: I am an entrepreneur with passion. Whether it's building websites and social media campaigns for new businesses or traveling the world on business trips - being entrepreneurs means constantly looking at yourself in a different light so as not get bored of your own success!

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